Leaders promote Sub-Saharan economy in Switzerland

Despite prevailing risks and slightly lower growth in 2012, African leaders, speaking that the World Economic Forum, maintain that political stability, infrastructure projects and strong growth projections for 2013 make Sub-Saharan Africa a viable market for investors.

The years 2008 through 2011 were perhaps one of Sub-Saharan Africa’s most prosperous periods of economic growth, as the ‘African Lions’ — countries like Nigeria, Angola and Ghana witnessed growth rates over or around 10 per cent — drew the attention of investors from all over the world.

However, slower, yet still strong, growth rates in 2012 have brought some fears that the region’s economy —driven largely by Eastern foreign direct investment and the expansion of the petroleum industry — had lost some of its dynamism.

On Wednesday, at the World Economic Forum in Davos, Switzerland, a number of African leaders and entrepreneurs spoke at the panel â€œDe-risking Africa” about the vast number of investment opportunities present in Sub-Saharan Africa.

While South African President Jacob Zuma and Nigerian President Goodluck Jonathan acknowledged many difficulties remain in Africa, including substandard infrastructure and high rates of youth unemployment, both leaders said that Africa’s increasing political stability — evidenced by peaceful elections in Ghana, Batswana and other countries — and major infrastructure investments across the continent made investing in Africa worth the risk.

Indeed, with the IMF projecting the region’s economic growth to once again increase to nearly 6 per cent and governments in Nigeria and other countries striving to diversify their economies, there is strong reason to believe that Sub-Saharan Africa’s economy will become an even more viable market for investors moving forward.